Fuel Payment Issues with Oil PSUs Will Be Resolved Soon: Air India

In an ultimatum to Air India, PSU oil majors on 10 October had asked it to make the monthly payment by 18 October.

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State-owned Air India on Sunday, 13 October, said the aviation jet fuel payment issues are being sorted out and will be resolved soon with the oil PSUs, which have warned the carrier of snapping supplies at six key airports if it does not make monthly lump sum payment by 18 October, PTI reported.

The airline also “assured” its customers of smooth operations, saying it has taken all the measures in the eventuality of the two sides failing to reach an understanding on the issue.

"The issues with oil companies are being sorted out and would be resolved early," Air India spokesperson Dhananay Kumar said in a statement, according to the report.

Pay Monthly or No Fuel from 18 Oct: Oil Companies to Air India

Issuing an ultimatum to Air India, PSU oil majors on Thursday, 10 October, had asked it to make the monthly lump sum payment by 18 October or they will stop the fuel supply at six major airports, according to an official document.

In a letter sent to Air India, the three oil PSUs – Indian Oil Corporation Ltd (IOCL), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) – said “the outstanding has not come down considerably in the absence of the committed monthly lump sum payment”.

The three fuel retailers had earlier stated that Air India owed Rs 5,000 crore in unpaid fuel bills with payments being delayed by almost eight months, PTI reported.

On 22 August, IOCL, BPCL and HPCL had stopped fuel supplies to Air India at six airports of Kochi, Mohali, Pune, Patna, Ranchi and Vizag over payment defaults.

However, after the intervention of the Ministry of Civil Aviation, they resumed the fuel supply on 7 September.

(With inputs from PTI)

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